Assuming there is no FHA provision against renting the house to cover the monthly nut and it's a 20 or 30 year fixed (or variable with a reasonable cap) I would be hard pressed to think of a better semi-passive speculation ... meaning one that did not involve starting an operating business. I'm not suggesting that house prices with come roaring back although they obviously could. I am suggesting , as I suspect Chuck is, that given a long time horizon there will be points on the curve that your cash on cash return will be superb if you hit the bid.